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Starb

Starbucks focuses on urban centers with large middle and upper-class populations for their locations to be more visible in the market. Their strategy is to prevent competitors from entering the market by adding new locations while retaining existing ones. When expanding to Italy, a risk for Starbucks is that Italian coffee culture is more about spending time with friends than just the coffee. In general, Starbucks considers developed and densely populated areas with affluent consumers who can afford premium prices when choosing business locations.

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Janine Caldito
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17 views1 page

Starb

Starbucks focuses on urban centers with large middle and upper-class populations for their locations to be more visible in the market. Their strategy is to prevent competitors from entering the market by adding new locations while retaining existing ones. When expanding to Italy, a risk for Starbucks is that Italian coffee culture is more about spending time with friends than just the coffee. In general, Starbucks considers developed and densely populated areas with affluent consumers who can afford premium prices when choosing business locations.

Uploaded by

Janine Caldito
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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STARBUCKS COFFEE

1. WHAT ARE THE AVAILABLE LOCATION PLANNING OPTIONS FOR


STARBUCKS?

Starbucks' location strategies were really great, they focuses on urban centers
especially those with large middle and upper-class populations. They also preffered
those main location for them to be more visible in the market. Starbucks' strategy is to
prevent their competitors in entering the market by adding new locations while
retaining the existing ones.

2. WHAT ARE THE RISK ASSOCIATED WITH THE BUSINESS EXPANSION


OF STARBUCK IN ITALY?

The risks of the business expansion of Starbucks in Italy is that their customers in
Italy has different coffee cultures than their customers in America. In Italy drinking
coffee is not just about the coffee itself, but to them it is about spending time with
friends.

3. WHAT ARE THE CONSIDERATION OF STARBUCKS IN CHOOSING A


BUSINESS LOCATION, BASED ON THE GENERAL FOR MAKING LOCATION
DECISIONS?

In general, in choosing a business location, Starbucks considers developed and


densely populated areas. They emphasizes areas with affluent consumers who could
afford its premium priced products.

4. WHAT IS THE MOST APPROPRIATE LOCATION ALTERNATIVE


TECHNIQUE SHOULD THE COMPANY EMPLOY?

In choosing a location for a company to employ, the best appropriate technique is the
Factor Rating where it provides the company to evaluate the location alternatives and
also enables decision-makers to incorporate their personal opinions and quantitative
information in the decision process.

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